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Understanding the Upgrade to HARP 2.0

by harprefinance

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The HARP loan program is not something that is new. The government originally released this program several years ago to provide relief for those who wanted to refinance but were unable to do so through traditional means. However, there were issues with this initial program that caused many people difficulty with obtaining these loans, leaving them just as frustrated as before. This is why the government created HARP 2.0.

Loan-to-Value Restrictions

In the original HARP program, there was a cap on the loan-to-value ratio. This ratio had to be between 80 percent and 125 percent. The issue was many homeowners have seen values of their homes drop far enough to fall well above the limitations for this ratio. Therefore, when the government looked at the program and made changes for HARP 2.0, they decided they would eliminate this cap so they could help the people who needed it the most instead of only a small percentage of homeowners.

Late Payments

The original HARP program was designed to restrict those who qualify for the loan to only those who haven’t had any late payments in the last 12 months. While this is a good thing in general, sometimes things happen and you may have been late on just one payment for any number of reasons. The upgrade to HARP 2.0 allows people to apply, even if they have had one late payment in the past 12 months.

Choosing a Lender

With the original program, homeowners were restricted to using the same lender that currently carried their loan. If this lender didn’t offer the HARP loans, it meant you couldn’t apply for the loan. When HARP 2.0 was instated, it allowed homeowners to choose any lender they desire for the HARP refinance program. This offered greater flexibility in obtaining the loan, as well as finding the best interest rates and terms.

HARP 2.0 was created to make positive changes to the original HARP program to help more homeowners make it through the downturn of the housing market. Some of the best changes in the program include the elimination on the cap for the loan-to-value ratio, being able to have one late payment in the past year and the ability to choose from a variety of lenders. This opens up the program to more homeowners, helping them obtain lower interest rates and make their home more affordable.


 If you are interested in finding out how HARP 2.0 can help you, visit or call 1-855-306-8810.

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